September 2009 Long Iron Condor

September 2009 SPY Long Iron Condor Exit
September 2009 SPY Long Iron Condor Exit

AUGUST 28 UPDATE: Taking advantage of price action to break down 50% of remaining call side of September 2009 SPY condor. SWGIZ at $1.49 and SWGIC at $0.54. If pricing gets attractive enough, I’ll close the whole thing out.  [Done.]

This position is currently being broken down, so I would not recommend entering it at this time.

Initially, the put-side was generated for a net credit of $0.52 and dissolved for a net debit of $0.13 for a profit of $0.39 per set…not bad for eleven days.  (About a 32% profit.)

Since then, I’ve been playing it safe by slowly scaling out of the call side, believing in the probabilities that there’s a 68% chance of not being exercised but not taking any chances.

25% of the position was eliminated on a pull-back during the week of August 24, lowering overall profitability to around 26%.

For the rest of this position, I’ll continue to exit the call side at 25% each week.  The objective is to break even simply to protect the put side profit.

Working on the assumption (ha!) that SPY remains around 102.7, the weekly profit loss is -9% on August 31, 0% on September 7 and +14% on September 14.  Of course, you can be more aggressive than me and hold on, hoping that the options all expire worthless, but that’s not my style.

Should we see a market correction, I might break down the position earlier.  Again, we’ll see, but any changes in strategy will be posted here.

Responses

  1. hi bro,

    my name is balraj from jakarta-indonesia. i have been learning options trading for abt 2 years now. next week i have decided to go live with thinkorswim.

    you know what? the iron condor is my fav. so i’d like to follow your trade for the october & november spy.

    please guide me.

    thanx bro


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